As a real estate agent, I often get asked about the best way to sell a home. There are two main options: a direct sale to a buyer or listing the house on the market. Let’s explore the benefits and drawbacks of each method to help you make the right decision for your situation.
Direct Sale to a Buyer
- Timing: A direct sale can have a more customized timeframe for closing that is ideal for you as a seller. This means a longer or shorter closing window and also terms such as a lease/rent back in the home after closing.
- Privacy: With a direct sale, you don’t have to worry about multiple strangers walking through your home during open houses or showings on a regular basis.
- Simplicity: When selling directly to a buyer the process is easily laid out and a plan is created that works for both parties. There are less complications when dealing with offer deadlines and figuring out multiple offers. Plus you do not have to prepare the home for each showing.
- Cost Savings: You could save money on the costs to fix and prepare the house as well as lower real estate fees.
- No Stale Listing: In a direct sale, the property will not be entered on the MLS until closing, so no Days On Market (DOM) counter to worry about. If the sale falls through, you can still list the home on the MLS, and it’ll be fresh on the market to buyers.
- Lower Selling Price: Direct sales might result in a lower selling price than if you listed your home on the market.
- Limited Exposure: Your home won’t be advertised on popular real estate websites, so fewer potential buyers will know about it.
- Contract Terms: With a direct sale you will only see terms from just one buyer. This means you might need to compromise in some areas of the contract. That said you would know these terms upfront.
Listing Your House on the Market
- Higher Selling Price: Listing your home on the market could attract multiple buyers who might want to submit offers on your home. A multi-offer situation can often lead to a higher selling price.
- Greater Exposure: Your home will be advertised on popular real estate websites, which means more potential buyers will see it and increase exposure of your home to buyers all over the world.
- More Buyer Options: With more potential buyers, you’ll have more options to choose from when selecting the best offer with the right contract terms that fit your situation.
- Time-Consuming: Preparing your home for showings and hosting open houses plus waiting for offers can take longer than a direct sale.
- Less Privacy: You will have multiple strangers walking through your home during showings and open houses.
- Additional Costs: It will typically cost more to prepare your home to list, make any recommended repairs, and pay higher agency fees.
- Uncertainty: There’s no guarantee that your home will sell quickly or for the price you want.
In conclusion, both a direct sale and listing your house on the market have pros and cons. Your decision will depend on factors like how quickly you need to sell, your desired selling price, and your comfort level with the selling process. As a real estate agent, I’m here to help you navigate both options and find the best solution for your unique situation. Have questions about the process? Give me a call! (207) 477-7344